Remedies

Remedies incorporate compensatory fees as a tangible consequence of poor data quality and servicing processes. These fees reinforce our Guide requirements, and also recover costs incurred by Freddie Mac as a result of a Servicer not adhering to our requirements for servicing mortgages. Strong servicing performance, including quality servicing, sound processes, and accurate data, prevents the assessment of compensatory fees.

The compensatory fees that make up the remedies portion of the program focus on improving data quality and reporting to help our organizations achieve greater consistency and efficiency in servicing Freddie Mac mortgages.

For More Information

• Review our Servicing Remedies Framework – FAQs for illustrative examples describing how we determine the appropriate Servicing Remedy and the calculation of such remedy.
• Review Guide Exhibit 96, Servicing Incentives and Compensatory Fees.
• Contact your Freddie Mac representative.